Light Commercial Vehicles are referred to as vehicles with gross weight ranging between 3.5-15 metric tons. It includes pickup trucks, three-wheelers, and minivans. These vehicles are used majorly for the transportation & distribution of goods over a short distance.
The "Brazil Light Commercial Vehicle Tire Market" is likely to grow at a CAGR of around 8% during the forecast period, i.e., 2021-26, says MarkNtel Advisors. The market growth primarily attributes to the burgeoning usage of light trucks to transport perishables like food & beverage. In addition to this, the rapidly expanding e-commerce industry, which is heavily reliant on light commercial vehicle tires for intercity and intra-city transportation, etc., is another significant factor fueling the growth of the Light Commercial Vehicle Tire Market in Brazil.
The research report, "Brazil Light Commercial Vehicle Tire Market Analysis, 2021," depicts a deep-dive market analysis of market statistics, including regional & country-wise market size, market forecast, CAGR & market share of different segments, competitive benchmarking, and key market drivers & restraints.
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Key Companies Profiled||Bridgestone,Continental,Michelin,Goodyear,Pirelli,Yokohama,Apollo,Others|
|Unit Denominations||USD Million/Billion|
COVID-19 Pandemic Negatively Impacted the Market Growth
Last year, the spread of the Covid-19 pandemic negatively impacted numerous businesses across Brazil, and the Light Commercial Vehicles Market was no exception, with their sales dropping down by more than 20% YoY. It was mainly due to the suspension of LCV production units and supply chain disruptions. However, with the lockdown upliftment and ease of norms, the market is recovering gradually and shall witness substantial growth in the coming years, thereby booming the sales of LCVs across the country.
Light Trucks to Account for Largest Share in the Brazil Light Commercial Vehicle Tire Market
Based on the Vehicle Type, the market bifurcates into Light Trucks, Light Buses, and Pick-Up Trucks & Vans. Among these, Light Trucks acquired the largest share of the Brazil Light Commercial Vehicle Tire Market during 2016-2020. Various construction activities are undergoing in the country under the public-private partnership since 2017. The surging government initiatives toward attracting more greenfield investments lead to aid the overall growth of the construction sector in the country, is a crucial aspect boosting the demand for light truck tires in the forthcoming period, cites MarkNtel Advisors in their research report, "Brazil Light Commercial Vehicle Tire Market Analysis, 2021."
OEM Segment Dominated the Brazil Light Commercial Vehicle Tire Market
Based on the Demand Type, the market divides into OEM and Replacement. Of both, the OEM segment dominated the market with a significant share during 2016-2019. The government's focus to strengthen its automobile industry and growing export potential in the regional economies improves the domestic production of LCVs in Brazil, which, in turn, fueled the demand for LCV tires from the OEM segment.
Moreover, according to OICA, the domestic production of LCV vehicles increased from 298,705 (2016) to 355,351 (2019). However, it again nosedived by 16% in 2020 due to COVID-19 restrictions on economic activities. The demand is likely to revitalize in the forthcoming years owing to the growing deployment of LCVs for intercity logistics. Eventually, the tire manufacturers would witness an increase in the demand for LCV tires.
Positive Economic Outlook to Boost the Market Growth
Brazil Light Commercial Vehicle Tire Market has gained significant momentum over the past few years. After experiencing severe economic crises in 2014 due to political instability, the country's GDP started reviving in 2016 due to the growth of foreign investment, which surged the per capita income. Hence, this enhanced domestic production for LCVs coupled with the implementation of the government's favorable policies is likely to positively influence the growth of the Brazil LCV Tire Market during the forecast years.
According to MarkNtel Advisors, the leading industry players in the Brazil Light Commercial Vehicle Tire market are Bridgestone, Continental, Michelin, Goodyear, Brasil Produtos Automotive Ltda, Pirelli, Yokohama, Apollo, etc.
Key Questions Answered in the Market Research Report:
Market Outlook, Segmentation, and Statistics
Frequently Asked Questions
A. The Brazil Light Commercial Vehicle Tire Market is forecast to grow at a CAGR of 8% during 2021-26
A. Bridgestone, Continental, Michelin, Goodyear, Brasil Produtos Automotive Ltda, Pirelli, Yokohama, Apollo are a few leading players in the Brazil Light Commercial Vehicle Tire Market.
A. OEM tires are likely to attain the highest CAGR and maintain their significant market share during the forecast period.
A. The surging usage of light trucks in the transportation of perishables like food & beverage and the rapidly expanding e-commerce industry are the prime factors augmenting the market growth.
A. The unexpected outbreak of the COVID-19 pandemic has negatively impacted the growth of the Brazil Light Commercial Vehicle Tire Market owing to the suspension of LCV production and disruption in the global supply chain.